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GAIL (India) has finalised a deal for procuring liquefied natural gas (LNG) from Qatar. It is learnt that GAIL has signed a gas sale purchase agreement with RasGas of Qatar for sourcing a cargo of LNG in January.
While declining to disclose the procurement price, an industry source said that the cargo will be received at Petronet LNG's Dahej terminal, Gujarat. The prevailing price of LNG in Japan and other countries is at $10-$11/mBtu. This will be GAIL's second buy from the spot market after September 2010, when it had sourced cargo from BG.
“The current spot buy is to meet the peak winter demand. This year winter has been severe across the country resulting in added power loads. Gas-based power plants are not only running to full capacity but even beyond, to meet the growing demand. As a consequence, requirement of natural gas has seen a sudden upsurge in the country,” industry source added.
Demand supply situation
Current domestic demand for gas is 225 mscmd and availability is close to 170 mscmd (domestic as well as imported).
Meanwhile, GAIL is expected to get the first LNG cargo from Japanese trading house Marubeni in February.
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